DE SB35

Establishes wage theft as a criminal offense under Delaware law, with penalties based on theft amount and escalated to a class E felony for repeat offenders with 2 or more convictions.

Defines wage theft to include six prohibited employer practices: failing to report employment to government agencies, improper tax withholding, failure to forward withheld taxes within 7 days of pay period, paying below minimum wage, misclassifying workers as independent contractors, and knowingly conspiring to facilitate these violations.

Authorizes the Department of Labor to investigate wage theft allegations, issue civil penalties of $2,000-$20,000 per violation ($20,000-$50,000 for retaliation), and require employers to pay restitution and achieve compliance with labor laws within 30 days of a final decision.

Allows employers to request a hearing before the Director of Industrial Affairs within 10 business days of a penalty notice, with appeal rights to Superior Court within 30 days of the Secretary's final decision.

Permits the Department of Labor to refer wage theft cases to the Department of Justice for criminal prosecution and allows employees to pursue additional remedies under existing wage laws; all civil penalties collected go to the Department of Labor for enforcement activities.